LAWYERS COOPERATIVE PUBLISHING COMPANY V. PERFECTO A. TABORA G.R. No. L-21263 April 30, 1965 Facts: •
Perfecto Perfecto A. Tabora(buy Tabora(buyer) er) bought bought from the Lawyers Lawyers Cooperative Cooperative Publishing Publishing Company(seller) one complete set of American Jurisprudence consisting of 48 volume volumes s with with 1954 1954 pocket pocket parts, parts, plus plus one set of Americ American an Jurisp Jurisprud rudenc ence, e, General Index, consisting of 4 volumes, for a total price of P1,675.50 which, in addition to the cost of freight of P6.90, makes a total of P1,682.40. Tabora made a partial payment of P300.00, leaving a balance of P1,382.40. The books were duly delivered and receipted for by Tabora on May 15, 1955 in his law office in Naga City.
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However, a big fire broke out in that locality which destroyed and burned all the building buildings s standi standing ng on one whole block includin including g at the law office office and library of Tabora. As a result, the books bought from the company as above stated, together with with Tabora Tabora's 's import important ant docume documents nts and papers papers,, were were burned burned during during the conflagration. This unfortunate event was immediately reported by Tabora to the company in a letter he sent on May 20, 1955. On May 23, the company replied and as a token of goodwill it sent to Tabora free of charge volumes 75, 76, 77 and 78 of the Philippine Reports.
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As Tabora failed to pay he monthly installments agreed upon on the balance of the purchase price notwithstanding the long time that had elapsed, the company demanded payment of the installments due, and having failed, to pay the same, it commenced the present action before the CFI of Manila for the recovery of the balance of the obligation.
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Defend Defendant ant,, in his answer answer,, pleade pleaded d force majeure majeure as a defe defens nse. e. He alleged that the books bought from the plaintiff were burned during the fire that broke out in Naga City on May 15, 1955, and since the loss was due to force majeure he cannot be held responsible for the loss. CFI rendered judgment for the plaintiff. It ordered Tabora to pay the sum of P1,382.40, with legal interest thereon from the filing of the complaint, plus a sum equivalent to 25% of the total amount due as liquidated damages, and the cost of action. •
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Tabora appealed to the CA, but the case was forwarded to the SC by virtue of a certification issued by the CA that the case involves only questions of law. •
Issue: W/N respondent Tabora should bear the loss and pay the unpaid purchase price. Ratio: YES. •
It was provided in the contract that "title to and ownership of the books shall remain with the seller until the purchase price shall have been fully paid. Loss or damage to the books after delivery to the buyer shall be borne by the buyer."
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General Rule: the loss of the object of the contract of sale is borne by the owner, or in case of force of force majeure majeure the one under under obliga obligation tion to delive deliverr the object is exempt from liability. BUT, this rule does not apply in this case beca becaus use e the the part partie ies s clea clearl rly y agre agreed ed to the the abov abovem emen enti tion oned ed cont contra rary ry
stipulation. •
Although the seller agreed that the ownership of the books shall remain with it until the purchase price shall have been fully paid, such stipulation cannot make the seller liable in case of loss not only because such was agreed merely to secure the performance by the buyer of his obligation but in the very contract it was expressly agreed that the "loss or damage to the books after delivery to the buyer shall be borne by the buyer."
Any such stipulation is sanctioned by Article 1504 of our Civil Code, which in part provides: (1) Where delivery of the goods has been made to the buyer or to a bailee for the buyer, in pursuance of the contract and the ownership in the goods has been retained by the seller merely to secure performance by the buyer of his obligations under the contract, the goods are at the buyer's risk from the time of such delivery •
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Force majeure will not exempt Tabora from his liability. This is because this only holds true when the obligation consists in the delivery of a determinate thing and there is no stipulation holding him liable even in case of fortuitous event. Here these qualifications are not present. The obligation does not refer to a determinate thing, but is pecuniary in nature(money), and the obligor bound himself to assume the loss after the delivery of the goods to him. Obligor(Tabora) agreed to assume any risk concerning the goods from the time of their delivery.
WHEREFORE, the decision appealed from is modified by eliminating that portion which refers to liquidated damages. No costs.
